Investing - Theory, News & General • Re: Question about Rising Interest Rates and TIPS

I will soon be adding to my TIPS ladder. Will today's TIPS rates tend to increase if the Fed raises rates again this year?

Perhaps it's already built into today's TIPS options.

Note #1 This feels a bit like market timing, which I tend not to do, but the question remains.
Note #2 I'm not sure how to make this question actionable. Mods, please forigve me.

Another question about market-timing the bond market..

Depending on what you do, that may be more than "a bit like" market timing; it may be exactly market timing.

Asking the question you asked is not market timing. Making buying and selling decisions based on the answer is market timing.

https://www.bogleheads.org/wiki/Market_timing

Market timing in and of itself is not necessarily good or bad. It can be useful to know when you are doing it; then, you can decide whether you want to.

I think a lot of bogleheads are afraid of being called market-timers; they understand that many bogleheads think market timing is something to avoid; maybe they don't want other people thinking bad things about them; and maybe they don't know pros and cons of it.

I suggest you avoid market timing, or at least be aware of when you are doing it, and instead make decisions based far more on personal circumstance and far less on market conditions, to the extent that perhaps you can sometimes completely ignore market conditions, at least to the extent of asking whether, say, current interest rates solve whatever financial problem you are trying to solve, instead of whether current interest rates are historically good, whether they will go up next week, and so on. For many, attempting to successfully market-time is likely to make things worse for them than if they had not done so.

You can find all sorts of opinions about what the fed will do, macro economic trends, and so on. Some of them will even be right. But just as with the stock market, they are utterly unconvincing (at least to me) as predictors before the fact of future risk/reward tradeoffs of interest rates of particular instruments, e.g., will interest rates go up, what risks are involved. By the time you see new news, professional traders and the market at large have already priced the news into the bond and equities markets. Be aware too that if interest rates go up then you are taking on more risk by using those higher-interest-rate instruments. Do not expect a free lunch.

Statistics: Posted by printer — Thu Oct 08, 2026 12:13 pm